Section Ins 3203.02 - Special Requirements for Depository Institutions(a) A financial institution may apply for a license to sell insurance if the financial institution and employees actively engage in the business of insurance and have complied with all the licensing requirements of the insurance department.(b) A licensed financial institution that directly, or through a subsidiary as defined by applicable federal and state banking law, may establish an insurance agency.(c) Each insurance agency shall be responsible for the following, as applicable to its insurance sales activities: (1) Collecting commissions from insurance carriers and paying commissions to its licensed sales staff; and(2) Processing insurance applications, delivering insurance policies and collecting premiums, where consistent with procedures of the relevant insurance carriers.(d) Business records of the agency, including copies of customer application(s) and policy information, customer complaints, licensing and all other compliance records, shall be available. A licensed financial institution which shares in commissions only, shall maintain business records commensurate with its active participation in the sale of insurance which shall, at a minimum, include information regarding customer complaints, licensing and all other compliance records and information on commissions received by the financial institution. In the alternative, the required business records of the agency shall be maintained and available at the agency in electronic form, with the original hard copy kept in off-site storage.(e) A financial institution that establishes a networking arrangement with a third party marketer shall obtain a corporate agent's license to share in commissions. The third party marketer shall be properly licensed in New Hampshire. If the financial institution contracts with third parties to assist it with insurance sales activities, the location of the third party activities shall be consistent with Ins 3204.07.(f) The following principles shall be applied to financial institutions when acting as insurance agents in determining the scope of solicitation and sales activities so long as such solicitation and sales activities otherwise comply with RSA 406-C and the other provisions of this chapter: (1) Contacts and meetings with customers and solicitation sales of insurance by licensed agents of the financial institution agency may be held;(2) Mailings to advertise and sell as well as brochures, leaflets and other literature alerting potential customers to the financial institution's insurance activities may be distributed;(3) Personnel of bank branches may make referrals to the bank's insurance agency; and(4) Telephone and cybermarketing may be used.N.H. Admin. Code § Ins 3203.02
#7064, eff 7-24-99; amd by #7540, eff 8-1-01